Gree Electric Appliances: Industry Profitability And The Lowest Valuation Of The
Gree Electric Announces Quarterly Bulletin 1-September Company realized operating income 30.68 billion yuan, down 12.6%; gross profit margin 25.4%, 6.3 percentage points year on year; net profit of 1.99 billion yuan, up 37.6%; medium EPS1.06 dollars, what we expected.
Although the net profit in line with expectations, but one quarter of the company 3Q earnings up 5.2% lower than we anticipated, because the third-party monitoring bodies corporate sales growth of 43.9%; analysis of volume and price factors, we judge the company 3Q region Sell Ex-factory prices fell over the company increases; total domestic sales over the same period about 1 / 3 share of the city Home Appliances End retail store just went down less than the average price up 1% (although Energy Air-conditioning subsidies has begun to implement), indicating that companies with lower prices in 3Q increase its support of sales companies, Gree’s regional sales companies in the profitability of this period should be good, while the harbor has enabled Gree is the lack of improvement in export circumstances to achieve a domestic market share of the basic solid.
3Q revenue quarter for 10.6 billion, though up from the first half of the negative growth to positive growth of 5.2%; but compared to third-party monitoring bodies corporate sales growth of 43.9%, showing that the company last year with ex-factory price of products decreased greatly. After the company announced quarterly investor conference call is to cut prices more to explain why income growth only slightly.
But the city from Yee monitoring appliance store sales terms, Geli end retail average price of only slight decrease over the previous year, down from 3,084 yuan to 3,055 yuan less than 1%, this is the energy-saving air-conditioning subsidies Since the June start of the case.
We judge 3Q company’s regional sales ex-factory price greater than the decrease over the previous year, with lower prices means increased sales companies. Gree’s regional marketing companies in profitability during this period should be good, and Gree the harbor has enabled the export situation has not improved domestic market share to achieve a basic solid.
Exports, while exports of industrial decline line monitoring is still great, but the company introduced 3Q single quarter of export earnings has achieved positive growth, the export is still very optimistic about this year.
5.2% revenue growth, net profit has increased by 71.36%, single-quarter net profit margin was 7.2%, the company has very strong profitability once again increased.
The company’s balance sheet and cash flow statements are also brighter than the mid-year report, receipts in advance 12.17 billion yuan, 2.32 billion higher than the mid-surge nearly 10 billion yuan, showing 3Q domestic industry has improved rapidly, the company’s strong paragraph absorption capacity.
On energy-saving air-conditioning subsidies for the company’s benefit, we at the Oct. 30 trade research brief “rational view of the energy-saving air-conditioning will be on the payment of subsidies” in their analysis; but after the release of the company’s quarterly conference call for investors , the company stressed that subsidies will receive a maximum amount of subsidies for inputs to marketing costs, so the company does not receive direct subsidies can be interpreted as pre-tax profit. However, we believe that the company is the biggest beneficiaries of subsidies to energy-saving air-conditioning, and on 2009’s net profit has thickened.
Raised 2009 profit forecast: Based on the company’s various product sales and average price changes, in particular, has been described above average price there fell of the situation and the Company Central air conditioning There are double-digit growth this year, coupled with energy-saving air-conditioning subsidies for thickening in 2009 to consider the performance, we adjust the company’s profit forecast, EPS up in 2009 to 1.489 yuan.
Investment advice: Profit forecast adjusted ,09-11, the company earnings were 404,470,585 million, growth rate was -4.23%, 16.32%, 24.53%; EPS were 1.489,1.820,2.157 yuan, growth were 33.8%, 22.3%, 18.5%.
Valuation of the company has been lower than for the white leader of the US’s electrical and Qingdao Haier, because our analysis is a major shareholder pressure and the reduction of rapid growth the company can continue to doubt whether the.
On the first point, Gree Group, now is the enterprises directly under SASAC, if planned reduction of more than 5000 million, the program must be submitted to the SASAC for approval, we recently learned that the attitude of this country is that the SAC format power held by the Group’s equity ratio low enough, so we think that reduction of pressure on smaller and smaller companies. On the second point, we believe that the central air conditioning and other new growth point of the scale did not have before, as long as the air conditioning industry growth rate will not decline for two consecutive years, the company’s regional marketing companies in the industry model is still the strongest competitiveness; the same time we have this seen in the field of central air conditioning, some new breakthroughs, growth can be expected; Therefore, we believe 20% growth in the next two years is a big possibility.
Taken into account, giving the company 20 times in 2009, 2010, 18 times PE (Still competing over looks, the Haier low) ,3-6 months at a reasonable price at between 29.80-32.80, maintain Buy rating.
Related Reading: Benefit from energy saving policy Gree air-conditioning will kindly consider the subsidies the United States of Kelon
Gree said 5-year fixed-frequency air-conditioning Glanz said delisting was premature Gree air-conditioning sales blowout
National Day, the U.S. accounted for Bacheng
I am an expert from China Computer Parts, usually analyzes all kind of industries situation, such as custom beach cruiser , dirt jumping bikes.
Processing your request, Please wait....
